The Buffalo-based company, which said on Friday that its pending purchase of Hudson City will be delayed because of a Federal Reserve review of M&T's anti-money laundering controls, said earnings rose to $274 million, or $1.98 a share, from $206 million, or $1.50, in the first quarter of 2012.

During an earnings conference call with analysts on Monday, M&T Chief Executive Officer Rene Jones dodged questions about how long the Hudson City deal may be delayed. The deadline for closing the deal was pushed back from Aug. 27 to Jan. 31.

The bank must upgrade its anti-money-laundering regime to the satisfaction of the Federal Reserve.

"We do not take regulatory approvals for granted." Jones said. "In terms of talking about timing, you just can't do it," he said. "Both parties are as firm as ever that this is a deal worth getting done."

M&T's mortgage banking revenue, derived largely from collecting origination fees on refinanced loans and selling the loans in the secondary market, increased to $93.1 million in the most recent quarter from $56.2 million in the first quarter of 2012. However, mortgage banking revenue fell by $23 million compared with the fourth quarter of 2012, when the bank posted a record $116.5 million.

The decline in refinancings in the first quarter as compared with the fourth period appears to be a trend: Wells Fargo and JPMorgan Chase & Co. last week reported that their mortgage banking results declined in the past three months as well.

"The issue is rates have been so low for so long that anybody that could refinance has already refinanced," said Robert Kafafian, CEO of The Kafafian Group, a Parsippany banking consultant. "Volume was going to have to slow down."

Keith Gumbinger, vice president of HSH.com in Riverdale, also said the pool of home buyers who could qualify for and benefit from refinancing has shrunk, even as 30-year rates this month again inched down below 3.5 percent, from 3.77 percent in mid-March.

M&T, which could become the largest deposit holder in Bergen County with its purchase of Hudson City, said Monday that growth in its trust business also helped lift fee income in the first quarter as interest income from loans and other investments also rose amid gains in business and consumer loan balances.

Costs associated with problem loans also declined at M&T. The bank's provision added to protect against possible future losses from bad loans fell to $38 million from $49 million in first quarter of 2012 as net charge-offs dropped to $37 million from $48 million in the year-earlier period.

A slowdown in refinancings reported now by several large banks may not bode well for Passaic County's largest bank, Wayne-based Valley National Bancorp, which lately has relied on its heavily promoted refinancing product with discounted bank fees to shore up profits in a difficult economy.

Marc Piro, a spokesman for Valley, said that "mortgage originations have been very strong in the first quarter and continue to be strong."

Piro said the company could not be more specific until it releases its first quarter earnings on April 24.

The Buffalo-based company, which said on Friday that its pending purchase of Hudson City will be delayed because of a Federal Reserve review of M&T's anti-money laundering controls, said earnings rose to $274 million, or $1.98 a share, from $206 million, or $1.50, in the first quarter of 2012.

During an earnings conference call with analysts on Monday, M&T Chief Executive Officer Rene Jones dodged questions about how long the Hudson City deal may be delayed. The deadline for closing the deal was pushed back from Aug. 27 to Jan. 31.

The bank must upgrade its anti-money-laundering regime to the satisfaction of the Federal Reserve.

"We do not take regulatory approvals for granted." Jones said. "In terms of talking about timing, you just can't do it," he said. "Both parties are as firm as ever that this is a deal worth getting done."

M&T's mortgage banking revenue, derived largely from collecting origination fees on refinanced loans and selling the loans in the secondary market, increased to $93.1 million in the most recent quarter from $56.2 million in the first quarter of 2012. However, mortgage banking revenue fell by $23 million compared with the fourth quarter of 2012, when the bank posted a record $116.5 million.

The decline in refinancings in the first quarter as compared with the fourth period appears to be a trend: Wells Fargo and JPMorgan Chase & Co. last week reported that their mortgage banking results declined in the past three months as well.

"The issue is rates have been so low for so long that anybody that could refinance has already refinanced," said Robert Kafafian, CEO of The Kafafian Group, a Parsippany banking consultant. "Volume was going to have to slow down."

Keith Gumbinger, vice president of HSH.com in Riverdale, also said the pool of home buyers who could qualify for and benefit from refinancing has shrunk, even as 30-year rates this month again inched down below 3.5 percent, from 3.77 percent in mid-March.

M&T, which could become the largest deposit holder in Bergen County with its purchase of Hudson City, said Monday that growth in its trust business also helped lift fee income in the first quarter as interest income from loans and other investments also rose amid gains in business and consumer loan balances.

Costs associated with problem loans also declined at M&T. The bank's provision added to protect against possible future losses from bad loans fell to $38 million from $49 million in first quarter of 2012 as net charge-offs dropped to $37 million from $48 million in the year-earlier period.

A slowdown in refinancings reported now by several large banks may not bode well for Passaic County's largest bank, Wayne-based Valley National Bancorp, which lately has relied on its heavily promoted refinancing product with discounted bank fees to shore up profits in a difficult economy.

Marc Piro, a spokesman for Valley, said that "mortgage originations have been very strong in the first quarter and continue to be strong."

Piro said the company could not be more specific until it releases its first quarter earnings on April 24.